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Seagate agreed to pay a $300 million fine to security agencies USA to send hard drives Huaweithereby violating the export control law.
Seagate has shipped more than $1.1 billion worth of hard drives to the Chinese giant, according to the country’s Commerce Department.
Case
Seagate sold units Huawei between August 2020 and September 2021, despite the August 2020 rule restricting the company’s sale of certain foreign products made with US technology.
As you remember, Huawei in 2019, it was blacklisted by the US Commerce to restrict sales of the company’s American products amid national security and foreign policy concerns. The move was initiated primarily by former President Donald Trump.
Seagate 7.4 million units shipped in Huawei about a year after the 2020 rule went into effect and became the sole supplier of hard drives to an Asian company, the Commerce Department said.
Two other companies that did so, Western Digital and Toshiba, stopped deliveries after the law was published.
“Error”
According to the government, Seagate misinterpreted the rule for foreign goods by requiring evaluation of only the last stage of the manufacturing process, rather than the entire process.
Seagate drives were manufactured in China, Northern Ireland, Malaysia, Singapore, Thailand, and the United States as ordered, and used equipment, including test equipment, was subject to the rule.
In August, the US Department of Commerce issued a “proposed charge” to the company, warning the company of a possible violation of export control laws. The letter marked the beginning of eight months of negotiations.
300 million fine Seagate it is to be paid in installments of $15 million quarterly over five years, with the first payment due in October.
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Source: RPP
I am Ben Stock, a passionate and experienced digital journalist working in the news industry. At the Buna Times, I write articles covering technology developments and related topics. I strive to provide reliable information that my readers can trust. My research skills are top-notch, as well as my ability to craft engaging stories on timely topics with clarity and accuracy.